Egyptian officials said here yesterday that they expect formal approval of a $140 million International Monetary Fund loan before the end of this month as the first stage of more than $600 million in IMF advances over a period of several years.
At the same time, long-term development loans amounting to about $1 billion over a four-year period have been suggested by Egypt to the World Bank, covering areas such as housing, power, water supply, transport and other "infrastructure needs."
Abdel Moneim Kaissouni, deputy prime minister of Egypt for financial and economic affairs, told reporters that the initial IMF loan would help cover the existing Egyptian balance-of-payments deficit.
In addition, Egypt expects to receive about $35 million this year from the IMF Trust Fund, which accumulates profits from periodic sales of IMF gold. The balance of the loans to bring the total above $600 million, Kaissouni said, will be negotiated over the next three or four years.
Along with Hamed A. Sayeh, Egyptian minister of economy and economic cooperation, and Ambassador to Washington Ashraf A. Ghorbal, Kaissouni gave an optimistic appraisal of future economic prospects for his country.
He said he found IMF and World Bank officials "reasonable and quite willing" to consider the Egyptian case for a large-scale expansion in economic aid.
In response to a question, Ghorbal said "there is no information" that the $1 billion in aid that Saudi Arabia has pledged to Africa "is in lieu of aid to IDA."
IDA is the soft-loan affiliate of the World Bank.
The World Bank, which makes loans to member countries for the internal development and improvement of their economies, already has $679 million in loans outstanding to Egypt, of which $305 million represents low-interest IDA loans.
The latest statistics for Egypt show a balance-of-payments deficit of about $1.4 billion in 1975. Monthly trade figures through early 1976 indicate a steady deficit, but the Egyptian officials said yesterday this was due to increased imports of industrialmaterials "to get the factories moving."